JARRETT GOODMAN
Staff Writer
During its recent public meeting, the Kimball Board of Mayor & Aldermen have approved the purchase of two Certificates of Deposit (CD) from Tower Community and First Jackson banks.
Discussion regarding CDs was previously brought up during the board’s July meeting, where it was mentioned how the city purchases a CD every year to coincide with funds for the fiscal year. During the July meeting, Alderman John Matthews felt that now is a perfect time and opportunity for the city to apply for a new CD, especially with interest rates looking to coming down within the area.
During this month’s board meeting, two quotes from Tower Community and First Jackson banks were examined. City Mayor Rex Pesnell explained how both banks quoted the exact same interest rate as one another, with both quotes at 4.25%. Vice Mayor Jerry Don Case suggested the idea to pay $3 million for six months out of the city’s budget towards both banks, with $1 million out of general funds and another $500,000 out of sewer funds for Tower Community and First Jackson. He asked if it would be possible for the board to approve the CDs with the proposed budgeting.
Mayor Pesnell stated he has looked into it and stated the city will financially remain in good standing if the board chooses to go towards the proposed route.
Vice Mayor Case’s proposition was unanimously backed by the board to approve both CDs, with $1 million to come out of general funds for both banks, in addition to $500,000 out of sewer funds with a 4.25% interest rate for both funds.